Millions of Australian cars hit with compulsory Takata airbag recall

Faulty and potentially deadly airbags will be out of approximately 2.3 million Australian cars by the end of 2020, the Turnbull government has announced.

Assistant Minister to the Treasurer Michael Sukkar today issued a compulsory recall for all vehicles fitted with defective Takata airbags, which can explode and launch metal shards when deployed, in what is the "largest and most significant recall in the nation's history".

“The recall will force manufacturers, dealers and other suppliers to ensure that all dangerous Takata airbags are located and replaced as quickly as possible,” he told reporters.

“They will be required to cover the full cost of replacing these airbags.”

The Takata airbag has been found faulty due to a chemical compound, ammonium nitrate, which deteriorates over time. (9NEWS) (9NEWS)The substance can quickly inflate the bag after a crash but is highly combustible. (9NEWS) (9NEWS)

Manufacturers Ford, BMW, Toyota and Volkswagen are among the affected 25 car makers expected to urgently replace their airbags.

The ACCC investigation found that the airbag's inflator contained a chemical compound, called ammonium nitrate, which deteriorates over time.

The airbags have been linked to hundreds of serious injuries and some deaths worldwide. (9NEWS) (9NEWS)

The substance can quickly inflate the bag after a crash, but is highly combustible in moist conditions and can cause metal fragments to propel from the airbag.

Deployment of the airbag has been linked to 23 deaths and over 230 serious injuries worldwide, claiming the life of an Australian man in Sydney last year.

“There has been one death and one case of serious injury in Australia. The government doesn’t want to see anymore,” Mr Sukkar said.

Earlier, Royal Automobile Club of Queensland spokesman Ben Turner said the “deadly problem” has rocked the automated industry.

“This is a deadline problem that needs to be solved,” Mr Turner told The TODAY Show.

“It has been scandalous, and it has been an issue that has been going on for more than a decade across the automated industry.”

About 2.7 million vehicles, or one in five passenger vehicles on Australian roads, were voluntarily recalled late last year, but one million airbags have not yet been replaced.

"Toluntary recall process has not been effective in some cases, and some manufacturers have not taken satisfactory action to address the serious safety risk which arises after the airbags are more than six-years-old," Mr Sukkar said.

The forced recalls adds an additional 1.3 million cars, including those from manufacturers who previously were not recalling their airbags and others that will need to be recalled in future.

"This is a huge issue," Mr Sims said.

"We (will) get these airbags out of Australian cars by the end of 2020."

Consumers are being urged to check whether their vehicle has been recalled to replace the defective airbags. (9NEWS) (9NEWS)

The scale of the recall is so big that it will be done on a rolling basis, with priority given to replacing airbags at most risk - particularly those with 'alpha' airbags' which pose an immediate risk.

"They are a minority but it's critical they be taken out, and if anyone has got an Alpha airbag, they should stop driving the car immediately because there's a chance of poor deployment," Mr Sims said.

The recall will also include the replacement of 'like-for-like' airbags, which have been installed as part of earlier recalls, and will also deteriorate over time.

"What I want to stress here is that not all the ... airbags are dangerous now," he said.

All affected airbags must be replaced by December 31, 2020, with the cost of the recall borne by the manufacturers.

For a full list of affected vehicle makes and models, visit the ACCC website.